The
following are responses from La Salle County
Judge Jimmy P. Patterson to several sets of questions.
La Salle County Judge Jimmy P. Patterson:
In response to your questions posed on October 15,
2002 and in addition to the answers given by Mr. Rick
Reyes I offer the following.
Questions
regarding the non-profit organization, the LaSalle
County Public Facilities Detention Corporation.
Q:
Why was the non-profit organization formed?
Patterson:
The corporation was formed as means to finance the
facility. It allows the County to only pledge Jail
revenues towards the repayment of the bond and allows
for the project to be used as security for bonds.
Q:
Who initially proposed the formation of a non-profit
organization in relation to this project?
Patterson:
The County Commissioners initially proposed to form
the non-profit.
Q:
When the new commissioners and new county judge come
to office in January, will they be put on the non-profit
board?
Patterson:
It could. That decision is in the hands of the Commissioner's
Court and the Board of Directors of the Corporation.
Q:
Can the non-profit include additional board members
who represent the Encinal community?
Patterson:
The Bylaws only allow for 5 Directors.
Q:
Shouldn't the non-profit board consist solely of members
who represent the interests of Encinal?
Patterson:
The Corporation is a County created entity and should
he controlled by the Commissioner's Court.
Q:
Can we get a copy of the by-laws for the non-profit
organization?
Patterson:
A copy of the bylaws is available for your review
at the County Judge and County Clerk's offices.
Q:
Does the corporation meet apart from the commissioner’s
court?
Patterson:
The Corporation meets when required, after Commissioner's
Court meetings.
Questions
regarding the process of securing funds and building
the facility.
Q:
Who will put up money for construction?
Patterson:
The money from the bond will pay for construction
costs.
Q:
For how much is the earnest money contract?
Patterson:
The County did not negotiate an earnest money contract.
A copy of the contract is included in the Official
Statement that is being sent to the Attorney General's
Office.
Q:
Who is the bidder?
Patterson:
There are two bidders. Emerald Corrections and Wackenhut.
Q:
What was the purchase price of the land?
Patterson:
The County did not negotiate the purchase price of
the land. A copy of the contract is included in the
Official Statement that is being sent to the Attorney
General's Office.
Q:
How much will be borrowed through bonds?
Patterson:
Approximately $21 million.
Q:
Who is issuing the bonds?
Patterson:
The LaSalle County Public Facilities Detention Corporation.
Q:
How can we be assured that the county will not be
held liable?
Patterson:
The County is not pledging its taxes against the repayment
of the bonds.
Q:
Why isn't the lease agreement for the facility filed
at the county?
Patterson:
When the lease agreement is finalized, it will be
filed in the County Clerk's office.
Q:
How can a non-profit with no assets issue
bonds?
Patterson:
The local government code allows it.
Q:
Who will actually own the land on which the facility
is built?
Patterson:
The Corporation until bonds is paid off.
Q:
What kind of bond certificates will be issued?
Patterson:
Revenue Bonds.
Q:
What are Certificates of Participation and how are
these different from Certificates of Obligation?
Patterson:
Certificates of Participation are debt obligations
in which investors purchase a portion of a financing
and receive Certificates of Participation as evidence
of their shared ownership in the financing. The Certificates
of Participation were payable from project revenues
only.
Certificates
of Obligation are debt obligations to the County.
The County issues the obligations pursuant to Subchapter
C, Chapter 271 of the Local Government Code to construct
or acquire public works. The Certificates of Obligation
are payable from ad valorem taxes of the County and
County revenues.
Q:
If this doesn't work, who is going to pick up the
cost?
Patterson:
If the project does not work, the Bond purchasers
will own the facility.
Q:
How will the $3 million cap grant be used?
Patterson:
The $3 million will be used for construction costs.
Q:
Who is taking the financial risk?
Patterson:
Primarily the Bond Purchaser.
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